indie Semiconductor, Inc. (NASDAQ:INDI) Q4 2022 Earnings Call Transcript

Ross Seymore: Hi guys, thanks for letting me ask the question. Two on GEO, one technology and then the follow-up will be on the financial side. So first on the technology side, Donald. You talked a little bit about it in your preamble, but I just wanted to better understand how this business is complementary to or potentially some substitution for your pre-existing vision portfolio. How do we look at what they bring versus division queue you guys had beforehand?

Donald McClymont: Well, I mean, just the fact that GEO was they had material products in certain areas where there were certain pieces of IP that we might have had to reinvent in order to access the market, so really the key in this was accelerating our time to market with the vision queue activities that we have ongoing. The way that our roadmaps work, there will be a lot of opportunity for us to take their IP and our IP and join them into something even better as a step beyond the parts that they have available today. Also in that respect, there are some synergies in the roadmap, which will take advantage of and will ripple through our P&L as we mature that. Ultimately, where we see the key benefit in what they bring relative to our whole portfolio is bringing sensor fusion together.

It’s the next topic that we’re going to cut into. We see massive opportunities for that in the market, combining the different sensor modalities, and the processing thereof into single platforms. And really that’s where we’re going to see it have the most traction in the portfolio as we bind them in.

Ross Seymore: Got it. Thanks for that. And I guess this one might be more for Tom. On the GEO side, you said there was a stub in your first quarter guide, any sizing on that and just kind of the linearity of how that $40 million you guys talked about in the initial announcement folds in.

Tom Schiller: Yes, sure. So, we’re expecting to close this quarter. We’re just modeling in a couple of million from GEO in terms of contribution. And then from there it’s similar to what we guided for indie overall, it’s accelerating growth, sequential growth throughout the year.

Ross Seymore: And that when you said accelerating, you mean year-over-year accelerating or the sequentials quarter-over-quarter are accelerating or maybe both.

Donald McClymont: Actually coincidentally, it’s both.

Ross Seymore: Great. Thank you.

Donald McClymont: Okay.

Operator: Our next question comes from the line of Craig Ellis with B. Riley Securities. Please proceed with your question.

Craig Ellis: Yes, thanks for taking the question. I will join the long hit parade and ask a GEO-related question to start. Donald, if you look at GEO and this really does look like one of those one in 100 deals from a revenue synergy standpoint. But if we’re looking at a business, it’s $40 million now. If you look out two to three years, and think about what’s possible with cross-selling and with your vision of where sensor fusion goes, how big do you think this business can be in the two to three-year timeframe?

Donald McClymont: Well, in the short term, as I’ve said before, I expect it to take the same profile as indeed it and we came out to the market. Basically, it’s kind of little subset of us now, if you can view it that way. In terms of perhaps the longer term, we’re seeing extremely high dollar opportunities and extremely high volume growing as a long-term result with that, which will result in design wins in the future of similar size to the radar design win that we’ve talked so much about over the last few quarters.